Eurozone loan growth improves despite weaker confidence - ING

Eurozone’s loan growth to non-financial corporates improved from 4% to 4.2% year-on-year in August and loan growth to households also increased marginally from 3% to 3.1% YoY, points out Bert Colijn, Senior Economist at ING.

Key Quotes

“After lending growth stagnated earlier in the year, a subdued acceleration has resumed, but given how marginal the pickup is, it is unlikely to prompt an acceleration in investment growth in the months ahead.”

“The slowdown in M3 growth is related to the wind-down of quantitative easing. The more narrow measure of money supply, M1, also declined from 6.9% to 6.4%.”

“Conditions for bank lending remain quite favourable.”